VMware might do a big buyback to placate shareholders ahead of the Dell deal

VMware and its parent company EMC are considering a multi-billion stock buyback and other steps to placate shareholder ahead of its massive merger with Dell, according to a report in Bloomberg.

The companies are also weighing a new structure that would consolidate Virtustream, a money-losing business that is slated to become 50-50 joint venture with VMware, into EMC instead, Bloomberg said.

The news follows Dell's October announcement that it plans to acquire EMC for $67 billion, in the tech industry's biggest merger ever. The merger is extremely complex, but could create an IT industry powerhouse.

Since the merger was announced, shares of VMware, which is owned by EMC, have declined 18%, lowering the per share sale price for EMC shareholders.

Some EMC shareholders have raised concerns about the deal with the company because of the stock drop, according to Bloomberg.